Ads
keep this website free for you. TaxTips.ca does
not research or endorse any product or service appearing in
ads on this site.
Before making a major financial decision you
should consult a qualified professional.
Non-family plans can have only one
beneficiary. The subscriber is not governed by a payment schedule, but
can make payments as desired, up to the annual limits. The beneficiary
does not have to be related by blood or adoption to the subscriber.
These plans can be self-directed plans with a financial institution.
Family RESPs
Family plans can have one or more
beneficiaries, all of whom must be connected by blood or adoption to the
subscriber. The subscriber is not governed by a payment schedule, but
can make payments as desired, up to the annual limits.
These plans can be self-directed plans with a financial institution.
Group RESPs
Group plans are usually offered by
scholarship plan dealers. There are normally fixed payment
schedules and higher fees associated with these plans. They are often
restricted to investing in low-risk securities, which historically have a
lower return on investment.
Transfers of RESP
Property to Another RESP
After 2010, transfers can be made without penalties and
repayments if the plan receiving the transfer amount allows more than one
beneficiary at a time, or if the beneficiary of a plan receiving the transfer
had not reached 21 years of age when the plan was opened. See below for
link to Canada Revenue Agency (CRA) information.
Rollover
of RESP to RDSP
After 2013, RESP accumulated income payments (AIP) can be rolled
over to a Registered Disability Savings Plan (RDSP). This can be done on a
tax-deferred basis by making an election in prescribed form if, at the time of
the election, the RESP beneficiary is also the beneficiary under the RDSP.
Facebook
| Twitter
| See What’s New, stay
connected with TaxTips.ca by RSS or Email
The information on this site is not intended to be a
substitute for professional advice. Each person's situation differs, and
a professional advisor can assist you in using the information on this web
site to your best advantage.
Please see our legal
disclaimer regarding the use of information on our site, and our Privacy
Policy regarding information that may be collected from visitors to our
site.